TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 69

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A

HEAVILY DEPENDENT ON THE U.S. MARKET - BUT IF HELD TO PROPOSED LIMIT.

FOR REASONS CAUSED BY ALLEGED BUT UNSPECIFIED DAMAGE TO U.S.

INDU INDUSTRY, LARGELY ATTRIBUTABLE TO IMPORTS OF WORK GLOVES FROM

ELSEWHERE, WE MAY LOSE THIS SECTOR. PLEASE REHEARSE THE FASHION,

SHORT-TERM-ORDER NATURE OF THIS TRADE.

DAMAGE TO WORK GLOVES SECTOR CAUSED BY FRUSTRATION OF ORDERS FOR

ABOUT 300,000 DOZEN IS ALSO LIABLE TO BE SERIOUS. AND INDUSTRY IS

BOUND TO BE AWARE OF ORIGINAL TAIWAN PROBLEM AND APPARENTLY FAVOUR-

ABLE RECENT REVIEW OF THE TREATMENT OF THIS TRADE REPORTED IN

YOUR MEMORANDUM 35.

THEN GO ON TO SAY THAT IF THE LIMIT OF 430,000 DOZEN CANNOT BE

SUBSTANTIALLY INCREASED WE INTEND TO SEND FOR U.S. CONSUL GENERAL

TO EXPRESS OUR ALARM AT THE DAMAGE WHICH COULD RESULT FROM THIS

HARSH DECISION AND THE CONSEQUENTIAL LOCAL REACTION. IT MUST NOT BE

OVERLOOKED THAT SIX MONTHS OF THE QUOTA YEAR REMAINS TO RUN, A LONG

TIME TO SHUT DOWN A SELF-CONTAINED SECTOR OF TRADE SEMICOLON AND

IN 1969 THE U.S. TOOK 27% (385,000 DOZEN) OF THE SALES OF OUR

WOVEN COTTON GLOVE INDUSTRY.

2. 1 APPRECIATE YOU FEEL THERE IS NO HOPE OF IMPROVEMENT, BUT IT

SEEMS NECESSARY TO MAKE LIFE AS DIFFICULT AS POSSIBLE FOR AMERICANS

TO DISCOURAGE FUTURE REQUESTS BASED, AS DESCRIBED IN YOUR MEMORANDUM

45, NOT ON THE ACTUAL AND IDENTIFIABLE THREAT OF DAMAGE TO THE U.S.

INDUSTRY BUT ON THE VOLUME OF PROTEST IT MAKES.

3. WE PROPOSE TO PREPARE A MEMORANDUM ON GENERAL PRINCIPLES FOR

THE FUTURE.

FCO PLEASE PASS ROUTINE TO WASHINGTON AND HONG KONG GOVERNMENT OFFICE

SIR D. TRENCH

REPEATED TO WASHINGTON

COPIES PASSED TO HONG KONG GOVERNMENT OFFICE VIA A.D.R./

INTERNATIONAL TRADE DISTRIBUTION

HONG KONG DEPT.

COMODITIES DEPT.

TRADE POLICY DEPT.

X.A.C.D.

YYYX

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